Machalke Polsterwerkstätten GmbH & Co KG (Germany) - Dec 2007

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01 December 2007

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Capvis Equity Partners has bought Swiss de Sede-Gruppe from owners Hans-Peter Fässler and Bernhard Schüler as part of a succession plan for the manufacturer of high-quality upholstery furniture. The previous owners, who acquired the company in a management buyout about 20 years ago, will continue to manage and significantly reinvested in the company. Capvis has been pursuing the acquisition opportunity de Sede for more than 10 years; Capvis was invited to the auction by Sal. Oppenheim Corporate Finance on behalf of the owners. The value of the company was determined during a leveraged buyout analysis. The investor was attracted by the strength of its brands and anticipates strong synergies between de Sede and existing portfolio companies, with very good potential for organic sustainable growth. Capvis already holds German upholstery company Machalke GmbH & Co. KG, based in Hochstadt, which was acquired in 2005 in a management buyout (December/January 2005, page 36). The current deal included a refinancing of Machalke, and both Machalke and de Sede will be held by new company Mapo, based in Munich, as equal partners.

Debt

HSH Nordbank, represented by Mr Schraut, provided the debt in a joint lead with Credit Suisse, represented by Ms Morelli. The size and structure of debt tranches was said to be traditional and virtually capex free. No mezzanine capital was used.

Company

Swiss de Sede-Gruppe is a manufacturer of high quality upholstery furniture under the brands de Sede and FSM. The company is located in Klingnau, was founded in 1965, and employs 220 people worldwide. Turnover was reported to be CHF 100m in 2006.

People

Tobias Ursprung, Marc Battenfeld and Andreas Simon handled the transaction for Capvis.

Advisers

Equity - Lenz & Staehelin, Rudolf Tschaeni (Legal)Vendor - Aon Mergers and Acquisitions Group, (Insurance Due Diligence)Vendor - Baker & McKenzie, Urs Schenker (Legal)Vendor - Ecosens, (Environmental Due Diligence)Vendor - Ernst & Young, Peter Stenz (Tax)Vendor - L.E.K., Mr Huth (Commercial Due Diligence)Vendor - Sal Oppenheim, Nico Theus (Financial Due Diligence)